Aircraft component designer and manufacturer TransDigm Group Inc. [TDG] yesterday said it has agreed to acquire Aerosonic Corp. [AIM] for $7.75 per share in cash, providing it with new products and additional aftermarket exposure.
The deal is valued at $39 million. TransDigm said the offer price represents a 60 percent premium to Aerosonic’s closing share price on April 19.
Aerosonic, which makes air data sensing, test and display components used in the business jet, helicopter and military markets, had $29.6 million in sales last year. About 55 percent of the company’s sales are derived from the commercial market. More than half the company’s sales come from the aftermarket.
TransDigm said that the proprietary nature of Aerosonic’s products and its aftermarket content fits well with the company’s business strategy. Aerosonic said that TransDigm’s broad market presence will allow it to expand opportunities for sales of its products.
TransDigm expects to commence a tender offer for Aerosonic’s shares on or before May 9. Terms of the deal allow Aerosonic to solicit additional offers for the company for 40 days.
Aerosonic’s financial adviser on the deal is Bluestone Capital Partners.